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IDC has cut its forecast for global IT spending for the fifth month in a row

Categories:Industry News
Time of issue:2023-04-11

(Summary description)Last Wednesday, IDC cut its 2023 global IT spending forecast for the fifth month in a row, as tech investment continues to show the impact of a weak economy. In its latest monthly forecast for global IT spending growth, IDC 25G SFP28 SR expects overall growth of 4.4 percent to $3.25 trillion this year. Last month, IDC forecast growth of 4.5%; In October 2022, it forecast growth of 6.0 per cent. "Since Q4, we have seen clear and measurable signs of a modest pullback in IT spending in some areas," said Stephen Minton, vice president of IDC's Data and analytics research group. Tech spending remains resilient compared to historical recessions and other types of business spending, but rising interest rates are now impacting capital spending." A month after cutting its forecast for PCS, IDC 25G SFP28 SR has now cut its forecast for a number of other hardware categories, including servers, wearables and peripherals. Corporate buyers have lowered their forecasts for internal infrastructure investment, while cloud and service provider deployments remain more resilient overall. Spending by service providers is still down from last year's highs as the industry adjusts to slower growth after the coronavirus pandemic, but planned investments by cloud and super-scale providers have remained largely unchanged since last month. While strong demand for cloud services continues to drive growth in the face of inflationary pressures, non-cloud spending will decline. Minton said, "The most significant impact is still in the consumer market, where IT spending is expected to fall by 2 percent this year. This would be the second year in a row that consumer tech spending has declined, a big change from the 18 percent consumer growth seen in 2021. On the other hand, enterprise demand for cloud and digital transformation remains strong despite economic headwinds." Minton added, Resellers, who still make most of their revenue from in-house infrastructure and PCS, will face tough market conditions this year. At the same time, cloud infrastructure, software and services are growing at a slower pace than a year ago, but still account for a larger share of total IT spending and are adding to the general resilience the industry still enjoys."

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IDC has cut its forecast for global IT spending for the fifth month in a row

(Summary description)Last Wednesday, IDC cut its 2023 global IT spending forecast for the fifth month in a row, as tech investment continues to show the impact of a weak economy. In its latest monthly forecast for global IT spending growth, IDC 25G SFP28 SR expects overall growth of 4.4 percent to $3.25 trillion this year. Last month, IDC forecast growth of 4.5%; In October 2022, it forecast growth of 6.0 per cent.

"Since Q4, we have seen clear and measurable signs of a modest pullback in IT spending in some areas," said Stephen Minton, vice president of IDC's Data and analytics research group. Tech spending remains resilient compared to historical recessions and other types of business spending, but rising interest rates are now impacting capital spending."

A month after cutting its forecast for PCS, IDC 25G SFP28 SR has now cut its forecast for a number of other hardware categories, including servers, wearables and peripherals. Corporate buyers have lowered their forecasts for internal infrastructure investment, while cloud and service provider deployments remain more resilient overall.

Spending by service providers is still down from last year's highs as the industry adjusts to slower growth after the coronavirus pandemic, but planned investments by cloud and super-scale providers have remained largely unchanged since last month. While strong demand for cloud services continues to drive growth in the face of inflationary pressures, non-cloud spending will decline.

Minton said, "The most significant impact is still in the consumer market, where IT spending is expected to fall by 2 percent this year. This would be the second year in a row that consumer tech spending has declined, a big change from the 18 percent consumer growth seen in 2021. On the other hand, enterprise demand for cloud and digital transformation remains strong despite economic headwinds."

Minton added, Resellers, who still make most of their revenue from in-house infrastructure and PCS, will face tough market conditions this year. At the same time, cloud infrastructure, software and services are growing at a slower pace than a year ago, but still account for a larger share of total IT spending and are adding to the general resilience the industry still enjoys."

Categories:Industry News
Time of issue:2023-04-11
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Last Wednesday, IDC cut its 2023 global IT spending forecast for the fifth month in a row, as tech investment continues to show the impact of a weak economy. In its latest monthly forecast for global IT spending growth, IDC 25G SFP28 SR expects overall growth of 4.4 percent to $3.25 trillion this year. Last month, IDC forecast growth of 4.5%; In October 2022, it forecast growth of 6.0 per cent.

"Since Q4, we have seen clear and measurable signs of a modest pullback in IT spending in some areas," said Stephen Minton, vice president of IDC's Data and analytics research group. Tech spending remains resilient compared to historical recessions and other types of business spending, but rising interest rates are now impacting capital spending."

A month after cutting its forecast for PCS, IDC 25G SFP28 SR has now cut its forecast for a number of other hardware categories, including servers, wearables and peripherals. Corporate buyers have lowered their forecasts for internal infrastructure investment, while cloud and service provider deployments remain more resilient overall.

Spending by service providers is still down from last year's highs as the industry adjusts to slower growth after the coronavirus pandemic, but planned investments by cloud and super-scale providers have remained largely unchanged since last month. While strong demand for cloud services continues to drive growth in the face of inflationary pressures, non-cloud spending will decline.

Minton said, "The most significant impact is still in the consumer market, where IT spending is expected to fall by 2 percent this year. This would be the second year in a row that consumer tech spending has declined, a big change from the 18 percent consumer growth seen in 2021. On the other hand, enterprise demand for cloud and digital transformation remains strong despite economic headwinds."

Minton added, Resellers, who still make most of their revenue from in-house infrastructure and PCS, will face tough market conditions this year. At the same time, cloud infrastructure, software and services are growing at a slower pace than a year ago, but still account for a larger share of total IT spending and are adding to the general resilience the industry still enjoys."

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Next: The arrival of the second wave of 5G: 30 countries in 2023 will launch services

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